Job Pricing Calculator
Enter your costs and desired margin to get the bid price that actually keeps you in business.
Runs entirely in your browser — your numbers never leave this page.
How it works
The formula that keeps contractors alive: price = (labor + materials + overhead) ÷ (1 − margin):
- Labor: true hourly cost (wages + taxes + comp + benefits), not the paycheck number.
- Overhead (10–20%): everything that isn't this job — truck, insurance, tools, phone, downtime. Jobs must carry their share.
- Margin vs markup: a 20% MARGIN means profit ÷ price. Marking cost up 20% only yields a 16.7% margin — this calculator does it right.
- Healthy targets: 10% overhead + 15–20% margin is a sustainable small contractor. Below 10% margin you're one bad job from trouble.
- Change orders: price them with the same formula — "small extras" at cost are where profits quietly die.
Frequently asked questions
How do I price a contracting job?
Add labor (at true hourly cost) + materials, add overhead %, then divide by (1 − profit margin) to get the bid price.
What is the difference between markup and margin?
Markup is profit ÷ cost; margin is profit ÷ price. A 20% markup is only a 16.7% margin — price on margin.
What profit margin should a contractor target?
15–20% net margin is healthy. Below 10% leaves no cushion for the inevitable bad job.
What counts as overhead?
Insurance, vehicle, tools, office, phone, advertising, downtime, bookkeeping — typically 10–20% of direct costs.
Should I charge hourly or fixed bid?
Fixed bids reward efficiency; hourly protects against scope creep. Either way, build from the same cost-plus-margin math.
How do I price change orders?
Same formula — labor + materials + overhead, divided by (1 − margin). Never do extras "at cost".
Why do I win bids but lose money?
Classic underpricing: overhead underestimated, margin computed as markup, or labor priced at wages instead of true cost.
Should materials have margin too?
Yes — the formula applies margin to the whole price including materials. Your capital and risk deserve return.
How do I handle sales tax on a bid?
Varies by state — some tax materials only, some tax labor. Check your state rules and state it in the bid.
What about deposits?
Take 30–50% upfront (check state limits — some cap deposits). It filters serious clients and funds materials.